This is a very good idea. It should be able to help young couples buy a new home to start their new lives together. Very informative post Rebekah.
Are you planning to get married and buy a home in Colorado, but wonder where your down payment funds will come from?
FHA has a Bridal Registry program where the money you receive as a wedding present can be used towards your down payment. Just like registering at a specialty or department store, the FHA Bridal Registry program allows you to register with a lender. Then your friends and family are able to make gift payments into an interest bearing account on your behalf.
It's a win win! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.
Bridal Registry Guidelines
Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance. The misunderstanding of how this program works might be the fact that it was originally only allowed by banks. Soon after, FHA modified the program and offered new flexible options and the opportunity for the newlywed to set up the account at any bank. Plus, newlyweds are now able to make deposits on their own from the gifts they receive.
Here's how it works in 3 simple steps:
- You will open a savings account at your bank prior to the wedding
- Friends and family will be given the banking information where the gifts will be deposited
- All of the gift funds can go towards the FHA required 3.5% down payment
- Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
- There is no requirement that you be married prior to closing on your new home
Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named "bridal registry account." It's that simple!
AGENTS: Marketing Ideas to Spread the Word in Your State
- Explain it on your website
- Blog about it
- Let your “to-be-married couples” know about it
- Send an email to past clients
- Attend wedding fairs & distribute brochures
- Mention it at your homebuyer seminars
The great news about this program is it is available Nationwide!
To learn more: Check out our FREE Top 20 Homebuyer Secrets that can save you thousands of dollars! Plus browse our Home Buying Resources section and fill-out a free no-obligation secure online application or call us in Colorado Springs, Colorado at 719.387.1368 with any questions.
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Newlyweds say "I DO" to FHA Bridal Registry Gift Funds was written by Rebekah Radice.
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Rebekah Radice | Mortgage Loan Originator
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